Purchase Solution

Flexible Budget

Not what you're looking for?

Ask Custom Question

You are evaluating the performance of the laboratory department manager. The output of this department is the number of tests performed. A static budget was prepared at the beginning of the year. You are now examining that budget in relation to actual experience. The relevant data are included in the attachment. The department manager is pleased because the department has a favorable $50,000 cost variance.

Evaluate the effectiveness of the manager using the flexible budgetary variance model. Did the manager do a good job this year?

See attached file for full problem description.

Purchase this Solution

Solution Summary

This solution looks at a flexible budgetary variance model.

Solution Preview

A flexible budget is a budget that adjusts for changes in cost driver activities. In this case the flexible budget is expressed as a fixed cost plus a ...

Purchase this Solution

Free BrainMass Quizzes
Operations Management

This quiz tests a student's knowledge about Operations Management

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.


This tests some key elements of major motivation theories.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.